| | Impairment of assets
Regulatory filing
The Management Board of Agora S.A. with its registered seat in Warsaw (“Company”, “Agora”) hereby informs that the Agora Group ("the Group") is in the process of verifying the valuation of its assets in accordance with the International Financial Reporting Standards, inter alia on the basis of an analysis of long-term financial forecasts for all of the business segments of the Group.
The above mentioned analyses show the necessity to incur impairments losses of assets in the Print and in the Internet segments. The total amount of the above mentioned impairments has an impact on both, the net results of Agora SA and the Agora Group, in the fourth quarter of 2018.
In the fourth quarter of 2018 the largest impairment loss related to GoldenLine Sp. z o.o. – its impact on the net result of Agora SA amounted to ca. PLN 9.0 million and for net result of the Agora Group to PLN 5.6 million. The individual value of the remaining impairment losses is not significant from the Company’s and the Group’s perspective.
The Company also decided to write-off remaining part of the overdue receivables of RUCH SA, burdened with the risk of being uncollectible. The impact of this write-off on the net results of both, Agora SA and the Agora Group, amounted to PLN 3.3 million in the fourth quarter of 2018.
The total negative impact of all one-off events described above is ca. PLN 14.3 million on the Agora's net result and ca. PLN 11.4 million on the net result of the Agora Group.
All of the above data are preliminary, non-audited estimates and may change during the finalization of work on financial statements for the fiscal year 2018. The additional information will be provided in the financial statements for the fiscal year 2018.
At the same time, the Company informs that the aforementioned impairment losses are one-off and non-cash and do not affect the liquidity of both, the Company and of the Group, or the strategic intentions of Agora S.A.
Legal basis: Article 17, paragraph 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission directive 2003/124/EC, 2003/125/EC and 2004/72/EC.
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